Words of Wisdom /Checklist for first house hack

New to Real Estate · Las Vegas · Member since 2020 · 35 posts · 22 votes

Hello to the traveler that comes across this post! Looking to get my first househack in the next year or so. In regards to this I ask of whoever is willing to provide some wisdom or tips for someone who plans to start out!

things that you wish you would've done differently, perhaps they went wrong

How should I prepare for my first househack? In terms of a checklist if anyone can offer some advice.

i aim to have this post have me cover my bases and understand some expectations so if anyone is willing, please do share your wisdom/experience

Thank you for your time

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Aaron ZimmermanBusiness Member

Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes

10mo

On the physical building: Understand what you’ll need to replace and when. Biggest items to replace would be roof, hvac, electrical, plumbing. Then, factor in cosmetic things like appliances, unit turnovers, etc. Residents: if you’re inherited tenants, do some due diligence on them: think estoppel agreements, FOIA requests on the property, even reviewing documents used to qualify. Overall goal: reduce your housing expenses and also cash flow upon moving out. Financing: talk with many lenders especially ones that service house hackers. Attend local meetups or join local facebook groups and reach out. The right lender is crucial to your team

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Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
10mo
On the physical building: Understand what you’ll need to replace and when. Biggest items to replace would be roof, hvac, electrical, plumbing. Then, factor in cosmetic things like appliances, unit turnovers, etc. Residents: if you’re inherited tenants, do some due diligence on them: think estoppel agreements, FOIA requests on the property, even reviewing documents used to qualify. Overall goal: reduce your housing expenses and also cash flow upon moving out. Financing: talk with many lenders especially ones that service house hackers. Attend local meetups or join local facebook groups and reach out. The right lender is crucial to your team
[email protected]
Brick House CPAs53 Reviews
Website View Page
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- Clarence Harvey
  OP
  New to Real Estate · Las Vegas · Member since 2020 · 35 posts · 22 votes
  10mo
  @Aaron Zimmerman thank you for your wisdom I do appreciate it. May I ask a few things:
  
  What is an FOIA request ?
  &
  
  can I be given more explanation as to how to choose a lender that is suited for the strategy of house hacking !
  
  1 Reply
- Aaron ZimmermanBusiness Member
  Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
  10mo
  @Clarence Harvey sure thing - happy to help.
  
  FOIA is freedom of information act. It allows You to see any public records on the property.
  
  For a lender that does house hacking, generally your realtor will have some contacts and that's usually a good first place to start. You'll want to make sure your realtor is real estate investor focused, not just for regular home buyers.
  [email protected]
  Brick House CPAs53 Reviews
  Website View Page
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- Clarence Harvey
  OP
  New to Real Estate · Las Vegas · Member since 2020 · 35 posts · 22 votes
  10mo
  @Aaron Zimmerman Thank you for the wisdom! I will keep this in mind. Happy thanksgiving!
  1 Reply
Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 940 votes
10mo
@Clarence Harvey
Hey Clarence, congrats on planning your first house hack, that move alone puts you ahead of most people. A simple checklist that helps a lot of newer investors is running real rent comps for the rooms or units, double checking mechanicals like roof, furnace, plumbing, and making sure you understand the true monthly payment with taxes and insurance. Biggest thing people wish they did earlier is budgeting for small repairs in the first year and picking an area where tenant demand is steady so the unit rents fast. House hacking is one of the safest ways to start if you go in with clear numbers and a solid plan, you’re thinking about it the right way already.

[email protected]614-418-6081
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- Clarence Harvey
  OP
  New to Real Estate · Las Vegas · Member since 2020 · 35 posts · 22 votes
  10mo
  @Arman Ahmed thank you, I've sent you a reply in messages ! Happy thanksgiving
  0 Reply
Jules Aton
MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
10mo
Smart to be strategizing in advance. What type of house hack are you planning on starting with?
0 Reply
- Clarence Harvey
  OP
  New to Real Estate · Las Vegas · Member since 2020 · 35 posts · 22 votes
  10mo
  @Jules Aton I'm a frugal and cautious guy, so I plan to househack a duplex starting out just to get my foot in the door as an investor and really understand what it takes and where I want to take it
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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 685 posts · 491 votes
10mo
Clarence, great question. Your first house hack sets the tone for everything that comes after, so getting the basics right matters more than trying to be perfect.

Here is a simple checklist I wish someone had handed me when I started.

1. Run the numbers based on today’s rents, not potential rents.
Use real comps, verify rents on units within a half mile, and stress test the deal at higher expenses and lower rents. A house hack works because it reduces your housing cost, not because everything has to go perfectly.

2. Get your financing lined up early.
Know exactly what your lender requires for a 2 to 4 unit. Ask them for the timeline, the appraisal expectations, and what repairs would be required to close.

3. Inspect the property like an investor, not a homebuyer.
Look at roofs, plumbing, electrical, foundation, HVAC, and anything that can wipe out your budget. Cosmetic issues are fine. Big ticket items change the math fast.

4. Learn the tenant side before you close.
Screening, leases, security deposits, move in checklists, communication. House hacking is easier when expectations are set early. Most new landlords struggle because they skipped this part.

5. Budget real reserves.
Vacancy, repairs, utilities, small surprises. Having a cushion makes the whole experience easier and much less stressful.

6. Decide how you want to live.
Are you ok sharing walls. Do you want long term renters, a roommate setup, or a short term rental. Your lifestyle matters just as much as the numbers.

7. Plan your exit.
Will you stay a year, refinance, keep it as a long term rental, or use it to move into your next property. The more intentional you are, the smoother the process will be.

House hacking is one of the smartest ways to enter real estate. It teaches you management, operations, and numbers while reducing your living expenses. Start simple, run honest numbers, and protect your downside.
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- Clarence Harvey
  OP
  New to Real Estate · Las Vegas · Member since 2020 · 35 posts · 22 votes
  10mo
  @James Jones Thank you! I will keep this knowledge all in mind. Everyone has been super helpful.
  as far as protection, may I ask what sorts of insurance should I consider starting out in a househack
  0 Reply
Min ZhangBusiness Member
Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
10mo
Hey Clarence, great post! The biggest thing I learned early on is to be honest with yourself about the day to day. You’re living on site, so picking a place that feels comfortable, safe, and manageable matters just as much as the math.

Before jumping in, make sure you understand what the realistic rent will be, what condition the major systems are in, and what you’re willing to take on. The best preparation is just getting familiar with what to expect: some repairs, some awkward moments with tenants, but also a huge learning curve and a chance to drastically cut your living costs. It’s one of the most forgiving ways to start investing, and you’re already asking the right questions. Happy to keep the conversation going!

[email protected]614-412-2912
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Crystal SmithPro Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
10mo
Quote from @Clarence Harvey:

Hello to the traveler that comes across this post! Looking to get my first househack in the next year or so. In regards to this I ask of whoever is willing to provide some wisdom or tips for someone who plans to start out!

things that you wish you would've done differently, perhaps they went wrong

How should I prepare for my first househack? In terms of a checklist if anyone can offer some advice.

i aim to have this post have me cover my bases and understand some expectations so if anyone is willing, please do share your wisdom/experience

Thank you for your time

Off the top of my head here's my checklist for house hacking
1. Preferrable homes to house hack are multifamilies unless you're in an area where you can potentially use an AirBnB Model and provide rooms for guests. If you do the latter- in my opinion you should only purchase a home with 2 bathrooms. A masterbath room for you and another for your guests.
2. Before you decide to house hack consider consider what your long term goals are. Do you want to find a property in a perfect location; your forever home; or will this be the first of many properties. I ask you to consider this because imany first time buyers choose locations where the properties will not have a positive cash flow while they are residing in the property & the goal is just to reduce thei living expenses (i.e. have rent cover a portion of mortgage payments.) While other choose locations where the properties will have a positive cash flow while residing in the property.
3. When talking to lender(s) see if you can get approved for an owner occupied loan that provides you with renovation $, like a 203K loan. Do you research on these type of loans.
4. When you calculate you profit numbers include property management expenses as part of the calculations, even if you plan on managing the property yourself. Why? Will the property still cash flow with that additional expense? Property management is another job and one day you may decide you don't want that job
5. When you close on a property purchase home owners warranty that covers all of the mechanical systems & keep paying for the warranty on a yearly basis. Companies like Amercan Home Warranty have plans for multifamiliy homes (2-4 units). While the cost of the plans will reduce your cash flow- it will save you a ton of $ when a major system goes out.
6. Start researching what kind of handyman services you will usse for repairs and maintenance, collecting rents, deposits...... There are many solutions. Some even promoted on Biggger Pockets.
Good luck
312-681-7487
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- Clarence Harvey
  OP
  New to Real Estate · Las Vegas · Member since 2020 · 35 posts · 22 votes
  10mo
  @Crystal Smith thank you! I appreciate your response. I will keep all of these in mind
  0 Reply
Spencer SturgillPro Member
Investor · Madison, WI · Member since 2024 · 20 posts · 5 votes
10mo
Hey Clarence, you're definitely on the right track thinking of doing a house hack. I just closed on one three days ago, and I have two pieces of advise.
I don't know your current financial situation, but utilizing a low downpayment program like FHA (3.5% down) or Homepossible (3% for singlefamily 5% for multi) is a great way to go. This may be controversial, but I don't think a property has to cashflow if you're living in it as long as it keeps your cost of living low. Ideally, after you move out in one year and purchase another house hack, it should cashflow.
Secondly, I recommend starting a relationship with a small, local bank. I did this, and my lender was able to be flexible with me in a way that a larger bank would not be.
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- Clarence Harvey
  OP
  New to Real Estate · Las Vegas · Member since 2020 · 35 posts · 22 votes
  10mo
  @Spencer Sturgill thank you! The plan definitely was to start with an FHA loan on a duplex that will cash flow post moving out! Hopefully one I can rent by the room as well. Will keep the small local bank idea in mind!
  0 Reply

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